NLNG Urges Gas Industry To Make Methane Reduction Business Priority

Nigeria LNG Limited (NLNG) has called on the global gas industry to make methane reduction a business priority, stressing that methane emissions represent not only an environmental challenge but also lost gas and revenue.
The company said its experience had demonstrated that investments in methane reduction could generate financial returns while cutting emissions and improving operational efficiency.
Managing Director and Chief Executive Officer of NLNG, Adeleye Falade, made the call at the Gastech 2026 Exhibition and Conference in Bangkok, Thailand, during a panel session titled, “Capturing the Lost Opportunity: Driving Global Alignment on Methane Abatement Across Natural Gas Supply Chains.”
Falade said NLNG’s approach begins with measuring methane losses and using the data to guide investments in leak prevention and gas recovery, supported by independent verification to ensure credible reporting.
He urged the industry to shift its focus from viewing methane reduction as a cost to recognising the value it creates through recovered gas, improved efficiency and reduced emissions.
“Every tonne emitted is lost product, lost revenue and lost energy; gas we could have sold. Every molecule of methane avoided is both an emissions reduction and a recovered energy resource,” he said.
Falade cited NLNG’s new boil-off gas compressor and start-up gas recovery project as examples of investments that combine emissions reduction with commercial value. According to him, each project is expected to deliver methane reductions of approximately 10 to 15 per cent and has a positive projected net present value, indicating that the anticipated financial benefits exceed the costs over the projects’ lifetimes.
“The most compelling business case is the simplest one: the projects that cut our methane also pay for themselves. The same discipline that reduces methane also improves asset reliability and plant efficiency. The returns show up in more places than the emissions ledger,” Falade said.
He explained that credible measurement was central to NLNG’s investment decisions, enabling the company to identify methane losses, direct resources towards appropriate interventions and assess the results of its actions.
Falade said NLNG had demonstrated that gas producers in developing economies could establish globally trusted emissions-reporting systems by investing in monitoring infrastructure, strengthening reporting capabilities and subjecting their data to independent scrutiny.
He highlighted NLNG’s Gold Standard recognition under the Oil and Gas Methane Partnership (OGMP) 2.0, noting that the company was the first in Africa to achieve Level 5 methane emissions reporting.
He added that NLNG’s measurement, reporting and verification (MRV) system is independently assured by DNV in accordance with ISO 14064.
According to him, NLNG’s methane management programme includes site-wide optical gas imaging, a structured Leak Detection and Repair programme, as well as the phased deployment of continuous monitoring systems and real-time dashboards across its plant and vessels.
“Credible measurement is a function of commitment and not a function of geography. NLNG has proved it can be done in Africa,” he said.
Falade noted that NLNG had not waited for perfect infrastructure before taking action, but had prioritised credible measurement, invested in appropriate technologies and strengthened its reporting through independent verification.
He said the industry should raise standards globally rather than lower expectations for producers in emerging economies.
He also disclosed that methane reduction was being incorporated into the design of NLNG’s Train 7 project, which will increase the company’s LNG production capacity from 22 million tonnes per annum to 30 million tonnes per annum.
At the national level, Falade said NLNG’s longstanding role in monetising gas that would otherwise have been flared had contributed to reducing Nigeria’s gas-flaring rate from over 65 per cent to under 20 per cent.
He described the conversion of wasted gas into a marketable product as the “original commercial case for emissions abatement.”
The NLNG chief executive further noted that credible emissions data was becoming increasingly important beyond plant operations, as methane intensity could influence procurement decisions, financing and buyer confidence.
He said NLNG was therefore extending its measurement and emissions-reduction discipline across its supply chain through its formal Scope 3 Advocacy Plan.
Under the plan, the company engages feed-gas suppliers and contractors to measure, disclose and reduce emissions. NLNG also sources verified upstream emissions data from its feed-gas producers and incorporates environmental, social and governance considerations, alongside emissions criteria, into supplier selection and evaluation.
On regulation, Falade called for greater consistency across jurisdictions, arguing that differences in measurement methodologies and reporting requirements make enforcement uneven and meaningful comparisons more difficult.
“The industry does not need weaker standards; it needs stronger, shared ones backed by real measurement,” he said.
Addressing the balance between climate ambition, energy access and affordability, Falade said NLNG’s operations support Nigeria’s targets of achieving net-zero emissions by 2060 and ending routine gas flaring by 2030.
He, however, stressed that emissions reduction must progress alongside efforts to meet the energy needs of households and businesses in developing economies.
“Developing economies cannot be asked to choose between economic development and emissions reduction. Both must progress together,” he said.
Falade said NLNG’s approach combines the practical requirements of energy supply and emissions management by measuring losses credibly, investing in gas recovery and applying consistent standards across the value chain.
He participated in the panel alongside Zubin Bamji of the World Bank, Niels Dijksman of Brunei LNG and Hiroyuki Mori of JOGMEC. The session was moderated by Dr. Carole Nakhle, an energy economist with Crystol Energy.

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